TSE:CP

Canadian Pacific Rail (CP.TO)

124.52
+1.21 (0.98%)
as of Jul 31, 2026, 8:00:00 pm Market Open.
640 watching
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Investor Insights
star iconJul 31, 2026, 12:00 am

This summary was created by AI, based on 27 opinions in the last 12 months.

Experts generally view Canadian Pacific Rail (CP-T) as a solid long-term investment, though opinions on timing for entry vary. Many see potential growth following the Kansas City Southern (KSU) acquisition, which strengthens CP's network across Canada, the US, and Mexico. However, concerns about cyclical recession and tariff impacts from trade negotiations linger, creating uncertainty around short-term performance. Analysts' price targets suggest some upside potential, with estimates around $120 to $132. Overall, CP's robust positioning in the rail industry and operational efficiencies are likely to benefit it long-term, although some analysts prefer Canadian National Railway (CNR) based on valuation metrics and dividend yields. Investors are encouraged to consider the market environment and potential pullbacks before making any purchase decisions.

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Consensus
Buy
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Valuation
Fair Value
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Similar
CNR,CP
BUY
The rails are stickhandling through the economy very well. Uncertainties include China refusing some crops. This is an economy stock, and the economy is chugging along at 2%. Oil shipments out of Alberta should continue for a while. Efficiencies in new track laid continue to creep into the system. The rails will do well as long as the economy does.
PAST TOP PICK
(A Top Pick Jul 24/18, Up 15%) With a large movement of commodities in North America, this has done well. There is a big push in Canada to haul oil by rail for the next couple of years.
DON'T BUY
CP vs. CN He feels the same way about both rails (see his CP comments). CP has very good exposure to grain. It will benefit from more Alberta oil shipments. Done well reducing expenses, but both rails are selling at premium multiples, too high for him. He'd be cautious stepping into either today.
WEAK BUY
CNR-T vs. CP-T It depends on your stage of life. CNR-T is more diversified. CP-T is more Canadian concentrated. He would go with CNR-T because of this. They should do better this year. If the economy got rougher, CP-T would drop off more.
TOP PICK
If you have a pro-growth movement in markets going forward, you have to have an investment like this. They are at the core of this theme. $280 will be its next move. It has really good support at $240. It is trading at a discount to its forward PE. Everything is pointing in the right direction for this. Seasonality for rails kicks in right now. (Analysts’ price target is $300.94)
COMMENT
He owns CNR-T instead. He likes their ownership and management and it has a good US footprint. CP-T has too big of a commodity exposure for him. He likes the outlook for railways overall.
BUY
Railroads. CNR-T vs. CP-T. Railroads are a great industry. A duopoly in Canada. CP-T is the more profitable operator and he favours it.
TOP PICK

Quality name that has gone on sale. Q3 was very strong with improvising efficiencies. They are doing a buy back. Modeling 16% growth with a name trading at 14 times 2019 earnings. If the economy is fine, which it is their base case, this is a name you want to be buying now. (Analysts’ price target is $312.47)

BUY
CP vs. CN It's as good as the Canadian economy. Ottawa's policies haven't been kind to our economy. CP vs. CN depends on their pricing at a given time. CN has a better network across North America, whereas CP is more Canadian. Both are good railroads.
BUY
CP vs. CN He likes and owns both. You're good to own either. Crude by rail is a tailwind. CP: great price momentum and valuation; it ranks in the top 25% of all stocks for him. CN: Almost the same, also in the top 25% and scores slightly better than CP.
BUY
CP-T vs. CNR-T.. They will trade in tandem. CNR has $100 as an entry point. CP-T should be bought at $250 or $225. There will be a consolidation period for a couple of months so you can pick away at the names. CP-T has taken over leadership in terms of relative performance.
COMMENT

CN-T or CP-T? He owns CN and CSX in the U.S. He likes CN for its north-south traffic to the States--it's safer. CP is east-west (more Canadian). CN will benefit from shipping out Alberta oil to California. It costs $12 per barrel to ship it, but the low WCS cost makes it still worth it.

BUY

They tend to do well this time of the year. We saw it come down. This is common right now. He is favourable for this one.

BUY

CNR vs CPR. He likes both CNR and CPR. They are bell weathers on the Canadian economy. There are high barriers to entry. It is an oligopoly between the 2 names. You can buy now and likely see double digit increase. With the recent pullback, a good entry point.

BUY ON WEAKNESS

He likes the rail. He is interested in this pullback as they were a little overvalued. The bigger play here is them going to grain shippers and other long-term contracts leveraging on the current crude contracts.

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